One industry in the world which has bucked slowdown to an extent is Outsourcing. The outsourcing market has been showing growth over the years. One of the major information service companies Global Information (GII), which has partnership with nearly 300 research companies in the world has come out with the latest IDC report which discusses on the growth figures of global outsourcing market and the US market.
The new IDC forecast expects the Global Outsourcing Market to touch USD 202.6 billion in 2016. It is expected to grow at a five year CAGR of 5.3 %. According to reports the US market is expected to grow at a CAGR of 4.2 % and touch USD 92 billion by 2016. IDC also forecasts that BPO service market in Western Europe will grow by 3.9% for the year 2011-2016.
In Western Europe the sectors which will grow between 2.7% and 4.6% are:
- Business Services
- Public Sector
- Wholesale & Retail &
- Financial Services
It is expected that the sectors which will be growing at the fastest rate are business services, manufacturing and financial sector. According to IDC the industry specific growth of BPO industry will be slow in 2012 compared to 2011.
The information services outsourcing services world over is also expected to grow in the future. The IDC report indicates that ISO market will touch USD 136.2 billion in 2016 growing at a five-year CAGR of 2.2%. IDC expects that the growth of ISO market will be driven by faster adoption of cloud services by BPO companies. The companies in the future would be under tremendous pressure to move to cloud services as it will help them in delivery faster services at a less cost. Infrastructure as a Service (IaaS) and Software as a Service (SaaS) will slowly start substituting traditional IS outsourcing
The report highlights the fact that BPO service providers are no more concentrating on just voice based services but are working hard to move up the value chain. The BPO companies are partnering with clients for end to end service solutions and are scaling up their competency levels in handling high value projects. BPO companies which are located in countries like India & Philippines are gearing up to undergo this transition. The BPO companies are increasingly adopting automation of sub process solutions thereby leveraging on business analytics, mobility, cloud delivery and big data. This has helped the client companies in:
- Reducing errors/defects
- Analysing business performance real time
- Standardizing business processes globally &
- Gain more control over the business operations
BPO service companies in the years to come have to create domain expertise across the various verticals and align their business model to the requirements of the clients. US and Europe would continue to be the major outsourcers of business processes and BPO companies in countries like India, Philippines, China, Malaysia and Australia will have to constantly innovate and fight for their share of pie.